Why NYSE:CVNA qualifies as a high growth stock.

Our stockscreener has identified a possible breakout setup on CARVANA CO (NYSE:CVNA). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:CVNA for potential opportunities.

Technical Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall CVNA gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CVNA is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that CVNA is one of the better performing stocks in the market, outperforming 99% of all stocks. On top of that, CVNA also shows a nice and consistent pattern of rising prices.
• CVNA is part of the Specialty Retail industry. There are 123 other stocks in this industry. CVNA outperforms 98% of them.
• CVNA is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• CVNA is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Our latest full technical report of CVNA contains the most current technical analsysis.

How does the Setup look for NYSE:CVNA

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CVNA currently has a 7 as setup rating:

Besides having an excellent technical rating, CVNA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period.

What matters for high growth investors.

• The quarterly earnings of CARVANA CO have shown a 239.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• With consistent quarter-to-quarter (Q2Q) revenue growth of 31.81%, CARVANA CO exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• The average next Quarter EPS Estimate for CARVANA CO has experienced a 125.0% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• The recent financial report of CARVANA CO demonstrates a 239.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• CARVANA CO shows accelerating EPS growth: when comparing the current Q2Q growth of 239.0% to the previous year Q2Q growth of 82.77%, we see the growth rate improving.
• CARVANA CO has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, CARVANA CO demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With institutional shareholders at 59.49%, CARVANA CO demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• CARVANA CO has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• The Relative Strength (RS) of CARVANA CO has been consistently solid, with a current 99.33 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. CARVANA CO exhibits strong prospects for further price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.